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Kuoni UK hit harder by weak pound than poor market

Kuoni’s UK business was harder hit by currency conversion into Swiss francs, the currency the Kuoni Group deals in, than by conditions in the UK market.


The Group’s financial results for the year ending December 31 2009 revealed that the operator’s UK operations performed well in 2009, with the market “experiencing a much smaller drop in turnover in local currency terms than other Kuoni markets.”


However, during 2009 the value of sterling dropped by around 15% compared with the Swiss franc, the currency in which Kuoni’s financial results are reported, so leading to a decline in turnover for the UK from CHF 661 million, £413.4 million, in 2008 to CHF 524 million, £327.7 million, in 2009.


Kuoni said that improvements to its UK web site during the year helped the business, in sterling terms at least. “The website was given a clearer structure and introduced a new technologies such as the dynamic price calendar and clearer special offers,” it said.


It also said the business was well served by its direct sale business, adding: “The UK suffered a far smaller decline in its turnover in local currency terms than other Kuoni markets, thanks largely to various actions taken on the direct customer contact front.”


Overall, the group reported a CHF 3,893.6 million turnover for 2009, compared with CHF 4,855 million in 2008. Gross profits fells from CHF 1,056.3 million to CHF 808.4 million.

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